Capitaland Ascott Trust · SGX:HMN
Capitaland Ascott Trust — Ascott Residence Trust — Merger or Acquisition (March 2016)
24 slides from Capitaland Ascott Trust's merger presentation, Mar 14, 2016
Slide 1: Ascott Residence Trust: Acquisition of a Second Property in New York
Ascott Residence Trust A Leading Global Serviced Residence REIT Acquisition of a Second Property in New York, United States of America 14 March 2016 1
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE The value of units in Ascott Residence Trust (“Ascott REIT”) (the “Units”) and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by Ascott Residence Trust Management Limited, the manager of Ascott REIT (the
Slide 3: Content
Content 1 Overview of the Acquisition 2 Rationale for the Acquisition 3 Impact on Ascott REIT 4 Conclusion 3
Slide 4: Overview of the Acquisition
Overview of the Acquisition Ascott Raffles Place Singapore 4 Ascott Limited Presentation July 2013
Slide 5: Overview of the Acquisition: Property Details
Overview of the Acquisition Property Details Sheraton Tribeca New York Hotel Property (the “Property”) 350 and 370-372 Canal Street, Location New York, NY 10013 No. of Units 369 units Title 99-yr leasehold (expiring Oct 2112) Franchised under the ‘Sheraton’ Brand brand by Starwood FC-Canal Managemen
Slide 6: Location of the Property
Overview of the Acquisition Location of the Property The Property is located in the heart of Tribeca, with close proximity to the Financial District, Soho, Little Italy and Chinatown The Property is strategically located within Downtown Manhattan1 catering to both corporate and leisure demand ─ Loca
Slide 7: Rationale for the Acquisition
Rationale for the Acquisition Citadines Suites Louvre Paris 7
Slide 8: Key Rationale
Rationale for the Acquisition Key Rationale 1 Enhance DPU to Unitholders 2 Resilient performance of the hospitality market in New York City (“NYC”) 3 Prime location in the Tribeca/SoHo vicinity 4 High quality asset franchised under reputable brand and managed by experienced operator 5 Consisten
Slide 9: Enhance DPU to Unitholders
Rationale for the Acquisition 1 Enhance DPU to Unitholders Distribution Per Unit (S cents) 8.11 – 8.12 7.99 Pre Acquisition Post Acquisition FY 2015 pro forma DPU will increase by 1.5% – 1.6% from 7.99 cents to 8.11 cents – 8.12 cents post acquisition1 Note: 1. Assuming acquisition is funded by a co
Slide 10: Resilient performance of the hospitality market in NYC
Rationale for the Acquisition 2 Resilient performance of the hospitality market in NYC As the world’s financial capital and an international cultural destination, NYC draws millions of travellers all-year round, making it one of the most resilient hospitality markets in the world NYC continues to be
Slide 11: Downtown Manhattan hospitality market performance
Rationale for the Acquisition 2 Resilient performance of the hospitality market in NYC With convenient transit system, desirable neighborhood amenities and extensive residential developments, Downtown Manhattan is a premier destination for residents and visitors alike Downtown Manhattan Hospitality
Slide 12: Prime location in the Tribeca/SoHo vicinity
Rationale of the Acquisition 3 Prime location in the Tribeca/SoHo vicinity The Property is located in the heart of Tribeca, one of the priciest residential neighbourhoods in Manhattan, and adjacent to SoHo, a premier retail district close to the financial district ─ The Property enjoys a good balanc
Slide 13: High quality asset
Rationale of the Acquisition 4 High quality asset… — The Property is relatively new, having been built and started operations in October 2010 — The Property has demonstrated strong operating performance; it achieved over 90% occupancy and approximately 7% year-on-year growth in RevPAU in 2015 — Curr
Slide 14: High quality asset (cont'd)
Rationale of the Acquisition 4 High quality asset… (cont’d) — The Property comprises 369 guest rooms, including 348 standard rooms, 20 suites and one presidential suite — Amenities include fitness center, meeting rooms, business center and rooftop terrace — Features a restaurant, a lobby bar & loung
Slide 15: Franchised under reputable brand and managed by experienced operator
Rationale of the Acquisition …franchised under reputable brand and managed by 4 experienced operator The Property will continue to be managed by third party operator and franchised under Starwood Hotels & Resorts’ ‘Sheraton’ brand Sheraton has been established for more than 75 years with bases of st
Slide 16: Consistent with investment strategy to increase scale in the US
Rationale for the Acquisition 5 Consistent with Ascott REIT’s investment strategy to increase scale in the US Ascott REIT will increase its scale in the US through the acquisition of its second property in less than a year Ascott REIT’s footprint in Manhattan post acquisition ─ Demonstrates Ascott R
Slide 17: Impact on Ascott REIT
Impact on Ascott REIT Ascott Raffles Place Singapore 17
Slide 18: Pro Forma Financial Effects
Impact on Ascott REIT Pro Forma Financial Effects Pre Acquisition1 Post Acquisition2 DPU 7.99 cents 8.11 cents – 8.12 cents Net Asset Value Per Unit S$1.41 S$1.40 Gearing 39.3% 40.2% Notes: 1. As at 31 December 2015 2. Assuming acquisition is funded by a combination of debt financing and part of the
Slide 19: Portfolio diversified across geography
Impact on Ascott REIT Ascott REIT’s portfolio is diversified across a geographical spread of 38 cities in 14 countries and across property and economic cycles Breakdown of Ascott REIT’s Assets by Geography Pre Acquisition Post Acquisition • The Americas – 5.6% • The Americas – 10.0% • Asia Pacific –
Slide 20: Conclusion
Conclusion Citadines Mount Sophia 20 CapitaLand Presentation May 2013
Slide 21: Conclusion
Conclusion Acquisition of a Second Property in New York, United States of America 1 FY 2015 pro forma DPU will increase by 1.5% – 1.6% from 7.99 cents Enhance DPU to to 8.11 cents – 8.12 cents post acquisition assuming acquisition is unitholders funded by a combination of debt and equity financing
Slide 22: Conclusion (cont'd)
Conclusion (cont’d) Acquisition of a Second Property in New York, United States of America 4 High quality asset The Property achieved over 90% occupancy and approximately franchised under 7% YoY growth in RevPAU in 2015 reputable brand and managed by Ascott REIT remains open to partner experienc
Slide 23: Overview of portfolio post acquisition
Conclusion (cont’d) Overview of Ascott REIT’s portfolio post acquisition S$5.0b1 11,667 90 38 Total Assets Apartment Units Properties Cities in 14 Countries The United Kingdom 4 Properties2 Belgium Germany 2 Properties The United States of America 3 Properties China France 2 Properties 10 Properties
Slide 24: Thank You
Thank You 24
Ascott Residence Trust — Merger or Acquisition (March 2016) on 6ix